Research On The Valuation Method Of A+H-share Cross-listed Companies

From the valley to the top,the Chinese stock market took 11 months,whole market value increase almost 250%piont;and only after 4 months,40%market value vanished.This tale occurred in 2015 sink deeply into Chinese people’s heart.It also affert the way I looked upon the Valuation which is exactly my graduation speciality.Among all sbjects in Valuation,the enterprise valuation is definitely the most closest relative subject to the financial market.Chinese stock market is small,but there are many interesting phenomenas attracting scholars to study them;among which the Chinese cross-listed enterprises has it’s own unique phenomena which is so-called as price differentiation,and it’s the emphasis of this article.The intrinsic value of enterprise is widely used in the asset evaluation to express the objective and true value of the enterprise.It’s theoretically an enterprise should have only one intrinsic value,however the cross-listed enterprises in China is well-known to have "different prices of same shares".This paper explored the various popular valuation models,and on the basis of this,this paper analyzed the different valuation models to find out that the residual income model is more suitable for measuring the intrinsic value of cross-listed enterprises.The essence of this article is to find out that which market is to more accurate on determining the value of the enterprise,and the use of the valuation tool can help determine the judgement,this choosed to use the residual income valuation model.In the chaper of empirical analysis,I used the residual income model to measure the value of the target enterprise,and compared the result with the price of the different market within a certain acceptable error range.The price of the A-share market is closer to the model result.In order to support this result,this paper also used the market method to get a different result value,however,the results of the two models came to the same conclusion which is that A-share market’ price is closer to the intrinsic value of the local enterprise..The conclusion provided a positive evidence for the overseas listed companies return to the A-share market in recent years.